JP Morgan to Invest $100 m in Aparna Constructions

June 19, 2007	(5 votes, average: 3.4 out of 5)  Loading ...
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JP Morgan, a leading financial services firm with global scale, is planning to invest $100 m in Aparna Constructions & Estates, a Hyderabad based property developer through its real estate arm. The investment is being made to develop a specific project which is expected to be routed through a special purpose vehicle (SPV).

Aparna Constructions enjoys the status of a prominent builder in Hyderabad real estate sector. The company has a multitude of development projects to be complete in its pipeline. It includes construction of malls, townships, other commercial and residential real estate projects.

The company’s current value of its existing land bank in Hyderabad is estimated at Rs 1,500-2,000 crore. The officials close to the development of the project with JP Morgan are preferring to keep their lips closed regarding the info.

The deal is likely to be one of the biggest fund actions in Hyderabad real estate market. Also, Trinity Capital, the UK-based fund, is to invest a whopping $18 million in Hyderabad based Manjeera Construction Company Limited (MCCL).

JP Morgan wants to make it BIG in Asian real estate. The company invested $22 billion in the South East Asian real estate thereby coming up as the best investor. It is holding high talks with several real estate companies.

The funds are likely to be sourced from JP Morgan Asset Management’s India Property Fund. The arm was formed a year ago from institutional and high net worth investors (HNIs). It envisages an internal rate return of 20%.

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